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Reward management. This case is concerned with Refusenicks PLC, which is a waste disposal and recycling company. As Assistant HR Manager a review of HRM policies and practices will be commissioned, in sequence to reach final recommendation. Following on

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Introduction

Contents Page Introduction..................................................................................................3 Identification of key reward issues...........................................................3 Review of strategic business........................................................................4 Critical evaluation of present reward structure...................................... 4 Recommendations....................................................................................... 7 Conclusion....................................................................................................11 Bibliography.........................................................................................12 Introduction: This case is concerned with Refusenicks PLC, which is a waste disposal and recycling company. As Assistant HR Manager a review of HRM policies and practices will be commissioned, in sequence to reach final recommendation. Following on a list of criteria, it will be critically evaluated for the existing reward provision in place, to find out where and why the previous management has gone wrong as well as identify necessary reforms to reward practices. Key reward Issues: The key issues need to be identified in order to ensure that reward management strategies support the achievement of the organisations business strategies and satisfy the needs and aspirations of employees for security, stability, and career development. Refusenick PLC tries to make sure that the workforce is treated well. However, the key issues at present which need to be taken into consideration are the following: * Hierarchical structure of the organisation * Lack of Communication * Organisational Culture: negotiation with the Union - bonus systems have to be presented to the Union before implementation. * No extra pay for staff if work longer hours or late hours * Pensions and extra holidays - No other incentives * Work manager's salary differences * Gap between top management and lower management. * No training schemes - chance of employee growth. ...read more.

Middle

The organisation also benefit, which is known to be a win-win situation. Therefore training should be taken into consideration. Recommendations As cited in Armstrong (2002, p 4) "a reward system consists of financial rewards (fixed and variable pay) and employee benefits which together comprise of total remuneration." It is moreover made up of non-financial rewards such as recognition, praise and personal growth. In general cases performance management processes are included. The combination of each and every one of them encompasses the total reward system. Recommendation for monetary remuneration may well be performance related pay. "Performance related pay (PRP) offers individuals financial rewards in form of increment to basic pay or cash bonuses, which are related to an evaluation of performance, generally in relation to approved objectives." (Armstrong 2002). The advantages of PRP to the employer are that rewards are given only for good performance. It is reasonable to employees as they will be aware of the fact that they will be remunerated for their effort if they meet the strategic objectives. The advantages of PRP to the employees is that it motivates them to work harder, giving them an opportunity to boost basic earning as well as increase commitment and loyalty to the organisation. However the disadvantages of PRP for employers are that it is complex, highly-priced, it is not flexible and focuses only on target rather than the whole job position or role. In regards to the employees' side, PRP is criticised as it lacks simplicity and small rewards do not always motivate. ...read more.

Conclusion

It is also designed to improve productivity through employee involvement, with the gains shared amongst employer and employees "Pension is another form of reward that can be taken into consideration. Pension can be seen as a form of delayed pay." (Marchington, 2005.p360) according to Tyson (2006, p 311) "pensions are an essential feature of the reward package, in regards to being an employer of choice, and because pension costs can amount to as much as 20 percent of the annual payroll." Refusenick PLC however, should consider switching from final salary pension and offer Money purchase pension instead as this will mean the company will face fewer risks in the longer run. Non financial incentives that might be introduced by Refusenick PLC can be training and development. Training staff improves performances, therefore if Refusenicks PLC added some training facilities within the organisation they could benefit a lot as by doing so staff skills would improve and develop, which would increase the working standards with hopes of promotions. Other benefits that could be envisaged are company cars, private health insurance or even travelling opportunities. Conclusion To conclude this report, the suggestions made look very encouraging and promising to both employer and employees. There are more incentives recommended to increase productivity and work capital. There should not be many conflicts or obstacles in relations to the changes made as it is linked to the corporate strategy of the business in which the workforce is treated well and there are no disruptions to services, as all are benefiting from the changes which are optional for improvement in the nearer future. ...read more.

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